CPI up as cigarette price rise counters cheaper petrol

CPI up as cigarette price rise counters cheaper petrol

18 April 2016

The consumers price index (CPI) rose 0.2 percent in the March 2016 quarter, Statistics New Zealand said today. This follows a fall of 0.5 percent in the December 2015 quarter.

“Higher prices for cigarettes, food, and housing-related costs were countered by lower prices for petrol and air fares,” consumer prices manager Matt Haigh said.

Cigarette and tobacco prices showed the highest upward contribution, up 9.4 percent in the March 2016 quarter following a rise in excise duty in January.

"The average price of a pack of 25 cigarettes was $28.79 in the March 2016 quarter, more than double the price from six years ago when annual 10 percent excise tax increases were introduced," Mr Haigh said.

Excluding cigarettes and tobacco, the CPI showed a fall of 0.1 percent in the March 2016 quarter.

Petrol prices (down 7.7 percent) made the largest downward contribution for the quarter. The average price of one litre of 91 octane petrol fell to $1.69 in the March 2016 quarter, compared with $1.84 in the previous quarter. Low oil prices, along with competition in the market, also contributed to lower airfares. International airfares were down 12 percent and domestic airfares fell 4.8 percent.

Annual CPI inflation rate rises to 0.4 percent

The CPI increased 0.4 percent in the year to the March 2016 quarter, up from a 0.1 percent increase for the year to the December 2015 quarter.

Housing-related prices continue to be the main upward contributor, up 3.0 percent in the year. This rise was led by higher prices for rent (up 2.3 percent) and newly built houses excluding land (up 5.0 percent).

Transport prices made the largest downward contribution for the year, influenced by lower petrol prices (down 5.1 percent). Excluding petrol, the CPI showed a 0.7 percent increase in the year to the March 2016 quarter.

The CPI measures the rate of price change of goods and services purchased by New Zealand households. See the interactive CPI visualisation for further information.

For more information about these statistics:

• Visit Consumers Price Index: March 2016 quarter

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